Broadcom Shares Plummet 10% After Sales Forecast Falls Short
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BreakingBusinessBroadcom Shares Plummet 10% After Sales Forecast Falls ShortByTy Roush,Forbes Staff. Ty Roush is a breaking news reporter based in New York City.Follow AuthorDec 12, 2025, 11:33am ESTToplineBroadcom’s shares plummeted by more than 10% Friday despite the chipmaker reporting quarterly revenue and earnings that surpassed Wall Street’s expectations, after CEO Hock Tan provided an outlook for AI sales that appeared to disappoint analysts. Investors pulled back from the chip firm despite beating Wall Street’s expectations for quarterly earnings and revenue.Copyright 2017 The Associated Press. All rights reserved.Key FactsShares of Broadcom declined by 10.5% to around $363.70 as of Friday morning, pacing what would be the largest single-day drop for the stock since a 17.4% rout in January.Broadcom on Thursday reported quarterly earnings per share of $6.82 and revenue of $63.8 billion, above economists’ estimates of $6.75 and $63.4 billion, respectively, according to FactSet.A rout in Broadcom’s shares appeared to follow estimates from Tan, who said during an earnings call the company had a backlog of $73 billion in AI product orders that would be shipped over the next 18 months—a figure Bank of America analyst Vivek Arya and JPMorgan analyst Harlan Sur questioned Tan about being correct.Tan clarified the $73 billion in backlog orders was an expected “minimum” in revenue, adding he expected sales to “keep growing.”Broadcom headlined broader losses across the tech-heavy Nasdaq, with declines for AMD (3.1%), Palantir (3%), Amazon (1.4%), Intel (1.4%), Alphabet (1.3%), Meta (1%), Nvidia (0.9%) and Microsoft (0.9%). Big NumberAbout $200 billion. That’s how much was cut from Broadcom’s market value as shares fell Friday, lowering from $1.9 trillion to just over $1.7 trillion. The chipmaker ranks as the sixth-largest company in the world, ahead of No. 7 Meta ($1.6 trillion) and just behind Amazon ($2.4 trillion). Despite Broadcom’s decline, its stock has outpaced No. 1 Nvidia ($4.3 trillion) so far this year, rising 57% compared to the AI giant’s 30.2%.Read MoreGot a tip? Share confidential information with Forbes.Editorial StandardsReprints & PermissionsLOADING VIDEO PLAYER...FORBES’ FEATURED Video